3 ms·

120K for 7% at SF area is indeed not attractive, not to mention you must move there and find your own working space etc. It might be interesting for the very ea

by ausjke 9y ago

120K for 7% at SF area is indeed not attractive, not to mention you must move there and find your own working space etc. It might be interesting for the very early stage startups and money-hungry (no-kids-yet) young founders. Yes the connections and advice are priceless but still money talks the loudest for most start-ups.

sillysaurus3 9y ago
It might be interesting for the very early stage startups and money-hungry (no-kids-yet) young founders. This is who YC funds. That's like saying it might be interesting for technology companies. Except YC funds plenty of founders with kids.
- nwenzel 9y ago
  I was 35 and had two kids when I went through YC in 2013. My cofounder was roughly the same age and also had two kids. We weren’t the oldest and we didn’t have the most kids. The idea that YC is just for 20-somethings and consumer/tech apps is a myth that may have been true early on, but is no longer based in reality. It does help to have a low personal burn rate. If you have high expenses, it’s difficult to quit a decently well paying job to start a startup. But that doesn’t have anything to do with YC. If anything, it’s marginally easier with YC backing because at least you can slow down the personal burn.
sjg007 9y ago
120k for 3 months to get to demo day to raise vc.
chrischen 9y ago
It used to be 13-21k for 7%.
othersideofcoin 9y ago
That effectively sets the average valuation at $1.7 million for every startup accepted into YC. While I'm sure there are exceptions, startups with really strong initial traction, that seems like a fairly reasonable (if not elevated) valuation.
austenallred 9y ago
Both my co-founder and I have kids. I would have given up 15% to do YC if I had to. The money is beside the point, but it’s enough, even in the Bay Area. It was, hands down, the best and most important thing our company has done. And we were profitable before YC began, so we didn’t need it.
- ausjke 9y ago
  So why is the YC/120K the most important thing your company has done even though you don't need it financially, YC somehow helps you to expand quickly?
  - adventured 9y ago
    The YC provided money is the least important benefit to doing YC. The parent very specifically notes that money wasn't the most important thing, you appear to have glossed over that. The value of getting accepted and how that acts as a filtering mechanism to prime venture firms. The network: YC alumni, investors, executives in the industry, mentors, etc. In other words, getting into YC will usually: enable you to raise venture capital from the best VC firms far more easily; it'll open doors that you previously likely could not open (especially for newer entrepreneurs); it'll help you with recruiting talented and experienced employees (critical to success); it's a halo, by getting accepted into it, you get to borrow reputation from what YC has built up.
    - deleted 9y ago
      [deleted]
agibsonccc 9y ago
We aren't this either. 2 cofounders 6 people. 1 with a kid, startup around for roughly 2.5 years before doing YC. In a year since YC we've more than tripled the team to more than 30 people now, of which again: most have kids. Ultimately for us, the network among other things has been the best part. I would definitely do it again. That being said, my anecdotal opinion: A weak point for YC is enterprise. If you want additional customers, there are a few big YC companies, but not many. Even then, when we did it, we found some help and still got great advice. If you sell to startups though, it's actually a great way to get customers. Something that hasn't really been around long enough yet, but also potential is the new vertical accelerator. Our batch was a bit too early for it, but they are trying to solve real problems these companies h ave.

by ausjke 9y ago

sillysaurus3 9y ago

It might be interesting for the very early stage startups and money-hungry (no-kids-yet) young founders. This is who YC funds. That's like saying it might be interesting for technology companies. Except YC funds plenty of founders with kids.

nwenzel 9y ago
I was 35 and had two kids when I went through YC in 2013. My cofounder was roughly the same age and also had two kids. We weren’t the oldest and we didn’t have the most kids. The idea that YC is just for 20-somethings and consumer/tech apps is a myth that may have been true early on, but is no longer based in reality. It does help to have a low personal burn rate. If you have high expenses, it’s difficult to quit a decently well paying job to start a startup. But that doesn’t have anything to do with YC. If anything, it’s marginally easier with YC backing because at least you can slow down the personal burn.

sjg007 9y ago

120k for 3 months to get to demo day to raise vc.

chrischen 9y ago

It used to be 13-21k for 7%.

othersideofcoin 9y ago

That effectively sets the average valuation at $1.7 million for every startup accepted into YC. While I'm sure there are exceptions, startups with really strong initial traction, that seems like a fairly reasonable (if not elevated) valuation.

austenallred 9y ago

Both my co-founder and I have kids. I would have given up 15% to do YC if I had to. The money is beside the point, but it’s enough, even in the Bay Area. It was, hands down, the best and most important thing our company has done. And we were profitable before YC began, so we didn’t need it.

ausjke 9y ago
So why is the YC/120K the most important thing your company has done even though you don't need it financially, YC somehow helps you to expand quickly?
- adventured 9y ago
  The YC provided money is the least important benefit to doing YC. The parent very specifically notes that money wasn't the most important thing, you appear to have glossed over that. The value of getting accepted and how that acts as a filtering mechanism to prime venture firms. The network: YC alumni, investors, executives in the industry, mentors, etc. In other words, getting into YC will usually: enable you to raise venture capital from the best VC firms far more easily; it'll open doors that you previously likely could not open (especially for newer entrepreneurs); it'll help you with recruiting talented and experienced employees (critical to success); it's a halo, by getting accepted into it, you get to borrow reputation from what YC has built up.
  - deleted 9y ago
    [deleted]

agibsonccc 9y ago

We aren't this either. 2 cofounders 6 people. 1 with a kid, startup around for roughly 2.5 years before doing YC. In a year since YC we've more than tripled the team to more than 30 people now, of which again: most have kids. Ultimately for us, the network among other things has been the best part. I would definitely do it again. That being said, my anecdotal opinion: A weak point for YC is enterprise. If you want additional customers, there are a few big YC companies, but not many. Even then, when we did it, we found some help and still got great advice. If you sell to startups though, it's actually a great way to get customers. Something that hasn't really been around long enough yet, but also potential is the new vertical accelerator. Our batch was a bit too early for it, but they are trying to solve real problems these companies h ave.